LGPI LG POLYMERS INDIA PVT.

LTD : VISAKHAPATNAM

HR MANUAL

Striving for Human Excellence

LGPI
VALUES CHERISHED BY THE LGPI
LG Polymers India Private Limited (LGPI) is a subsidiary of LG Chem. Manufactures Polystyrene (PS) LGSTRENE & Expandable Polystyrene (EPS) LGEXPOL We Believe in : Providing and monitoring safe plant, equipment and ensuing safe work practices. Meeting all legal and other requirements related to our internal and external environment and striving to exceed them where possible. According top priority to the customer needs by providing best quality of products and prompt services. Team spirit through mutual co-operation , support and participative decision making. Clear, crisp , frank and effective oral & written communication. Disciplined and systematic working with well defined responsibilities and accountabilities. Training our employees for high performance and developing them to their utmost potential. Respect and care for every individual associated with us . Professional growth of an Individual through objective evaluation of performance. Cost effectiveness by optimum utilization of time and other resources. Encouraging innovation and creativity by welcoming challenges & suggestions and by accepting risk. Being a responsible & good corporate citizen.

IR MANUAL: I N D E X S.NO 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 PARTICULARS PREFACE ORGANISATION HIERARCHY MANPOWER PLANNING RECRUITMENT & SELECTION INDUCTION & ORIENTATION PROBATION & CONFIRMATION PERFORMANCE APPRAISAL TRAINING & DEVELOPMENT ISSUE OF OFFER /APPOINTMENT LETTER OTHER LETTER TO EMPLOYEES ATTENDANCE RULES LEAVE RULES PAID HOLIDAY C. OFF RULES TRAVEL RULES LOCAL CONVEYANCE CELL PHONE POLICY LOAN POLICY TRANSFER POLICY CITY COMPENSATORY ALLOWANCE. GET TO- GETHER W/HR 001-05 W/HR 002-05 W/HR 003-05 W/HR 004-05 W/HR 005-05 W/HR 006-05 W/HR 007-05 W/HR 008-05 W/HR 009-05 W/HR 0010-05 W/HR 0011-05 W/HR 0012-05 W/HR 0013-05 W/HR 0014-05 W/HR 0015-05 W/HR 0016-05 W/HR 0017-05 W/HR 0018-05 W/HR 0019-05 POLICY ID PAGE NO.

HR PROTOCOL@2005 : I N D E X
SNO 21 22 23 24 25 26 27 28 29 PARTICULARS MARRIAGE GIFT BIRTHDAY CELEBRATION PROFESSIONAL DEVELOPMENT PF/EST/TDS RESIGNATION /TERMINATION DISCIPLINARY ACTION EXIT POLICY FULL & FINAL SETTLEMENT RETIREMENT POLICY POLICY ID W/HR 0020-05 W/HR 0021-05 W/HR 0022-05 W/HR 0023-05 W/HR 0024-05 W/HR 0025-05 W/HR 0026-05 W/HR 0027-05 W/HR 0028-05 PAGE NO.

LGPI

P R E F A C E
The HR Manual is designed to provide a clear statement of the Companys Human Resource Philosophy. The policies contained in this manual are in keeping with the purpose and guiding principles of the company. The manual underpins and brings together all the organisations various codes of practice relating to specific aspects of Human Resources, which are listed in Index Human Resource Management is a dynamic function , which needs to adopt to the changing business needs of the organization. Thus this manual provides the basic guidelines to channelise the HR initiative in the organization and may not provide exhaustive solutions to problems, which keep emerging at regular times in the organization. OBJECTIVES To provide a standard reference to Mangers and Employees in understanding their rights and carrying out their responsibilities. To encourage continuity and consistency in the administration and application of Human Resource Policies To provide a direction and clarity in the day to day administration of Human Resources.

APPLICATION These policies are approved by the Director , administered by the HR Deptt. and apply to all employees of the Western Group

The HR Policy Manual is designed to be the primary reference document for communicating and interpreting the human resource policies and procedures applicable to employees at Western The company reserves the right to add to , to delete from , to change or otherwise revise policies contained in this manual with or without the prior notice to the employees whenever the company determines such action is warranted. This manual is published and maintained as a guide for all employees in order that human resources matters can be handles timely and equitably. The manual supercedes all inconsistent official statements which have been issued till date Questions regarding the applicability of any of the policies in this manual to the employees should be directed to the Corporate HR , Mumbai

KS PRAVEEN GENERAL MANAGER -HR

POLICY NO : W/HR 001-05 SUBJECT : ORGANISATION HIERARCHY EFFECTIVE : 1st April2005 SUPPORT LEVEL LEVEL SL-0 SL-1 SL-2 SL-3 DESIGNATIONS Peon, Helper, Driver Technician / Store Keeper Senior. Technician /Assistant/ Secretary Officer / Supervisor / Co-ordinator / Accountant / Engineer

MANEGEMENT LEVEL ML-1 ML-2 ML-3 ML-4 ML-5 ML-6 ML-7 ML-8 ML-9 ML-10 ML-11 Executive/ Sr. Executive / Area Manager Assistant Manager Manager / Branch Manager Sr. Manager / Regional Sales Manager Assistant General Manager / Deputy General Manager General Manager Vice President President Director Managing Director Chairman

ORGANISATION HIERARCHY

POLICY NO : W/HR 002-05 SUBJECT : MANPOWER PLANNING EFFECTIVE : 1st April2005

MANPOWER PLANNING

Man power planning enables an organization to project its short to long-term needs so that it can adjust its manpower requirements to meet changing priorities.

PURPOSE: To ensure a sufficient number of suitably qualified personnel are maintained at all levels throughout the organization.

POLICY Manpower requirements will be reviewed on a quarterly basis. It is strongly suggested that the manpower plan of each business area /unit is frozen at the beginning of the financial year keeping in perspective , the business plan for the year.

MANPOWER PLANNING

POLICY NO : W/HR 003-05 SUBJECT : RECRUITMENT & SELECTION EFFECTIVE : 1st April2005

People are the most valuable asset for an organization. In this world of ever increasing competition, an organization has to keep up with the varying needs of customers. This can be accomplished by value added products and services, conceived and developed by a quality and creative workforce. PURPOSE To attract, select and retain the best talent and ensure that appointments are made on merit through a fair and equitable selection process. RECRUITMENT POLICY 1. Recruitment shall be done as per Manpower Plan only. All manpower requirements will be initiated by the Head of the Department, in which the manpower is needed. 2. The Employee Requisition Form ( ERF ) Annexure-I shall be used for indenting the Manpower providing all details and Justification about the requirement This will be forwarded to HR Department ,which in turn will take the approval of management. 3. It is not essential that a replacement is needed whenever there is a separation. Each request for recruitment has to be justified by the head of the Department. 4. Recruitment may be made through Advertisements /references if possible. Database/ Placement Agencies/

5. The Immediate Superior and the Departmental Head would take the interview. They will discuss the prospects of employment with HR Department at Mumbai subsequently. 6. For Position at Mumbai, the candidates will be interviewed by the HOD and the HR Head together or separately. 7. All appointments have to be approved by the Directors for ML-2 and above. For all other appointments it will be as per the business plan and VP /GM approval. RECRUITMENT & SELECTION

POLICY NO : W/HR 003-05 SUBJECT : RECRUITMENT & SELECTION EFFECTIVE : 1st April2005

SELECTION POLICY
1. Selection should be based on merit through a systematic and careful assessment of each candidates ability to fulfill the listed selection criteria having regard to the following: a. Aptitude to perform the duties of the position, as demonstrated by level of work in previous positions; b. Extent i.e. breadth or range of relevant experience; c. Qualification and Training ; d. Capacity for development; and e. Relevant personal qualities. 2. Short listing will be confined to applicants who comply with stated essential criteria. 3. Qualifications, knowledge, skills and experience required for the position must be listed as essential or desirable. Although qualifications pre-requisites for many positions, it should be recognized that many skills and abilities are acquired other than through formal education. INTERVIEWS PURPOSE : To ensure all applicants are provided with equal opportunity to present their cases for appointment and the Selection Panel base the decision on criteria relevant to the position. POLICY 1. The interview panel shall comprise the Head of the Department where the vacancy exists; authorized representative of the Department with whom the candidates shall have the maximum interface and HR Head 2. For Senior Positions, Manager and above the Candidate has to be seen and approved by the Directors. 3. The Panel could interact with the candidate either together or separately.

RECRUITMENT & SELECTION

POLICY NO : W/HR 003-05 SUBJECT : RECRUITMENT & SELECTION EFFECTIVE : 1st April2005 4 5 The interview should also be used to clarify with the applicant any ambiguities or lack of information in the written application Applicants must not be asked irrelevant questions regarding personal circumstances that are not applicable to the requirements of the position

6. First round of Interview should be conducted telephonically either by the HR or the Deptt. Head in cases where the candidate is based far away to assess the basic suitability.

REIMBURSEMENT
For outstation candidates , the reimbursement of Travel Expenses would be as follows a. Up To AM : IInd Class Train Fare/ Bus Fare

b. Manager and above: III rd AC fare / AC Bus Fare c. GM and above : IInd AC Train Fare / Air fare

INTERVIEW REPORT : The interview Assessment Sheet (Annexure II ) shall be completed by the Panel /Interviewers after the interview. The interview assessment sheet will contain the following information : 1. The recommended salary and benefit 2. Place and the date of joining 3 Details of any special requirements or conditions relating to the appointments 4 Any assurances given to the candidate with regard to the salary increase / redesignations at the end of the probation period job profile and the joining expenses RECRUITMENT & SELECTION

EMPLOYEE REQUISITION FORM ( E R F )

The ERF serves the purpose of providing basic information on the nature of vacancy and the reason for the recruitment. Please fill up the form completely so that the right person is recruited. 1. LOCATION: Date of initiating the Requisition: 2. DEPARTMENT: Sales/ Marketing/ Service/ Operations/ Accounts/ Finance/HR/Materials/Production / QA/ Maintenance / R & D / Others (Please specify) 3. DESIGNATION : COMPENSATION:

4. POSITION is a a. Replacement (name of person to be replaced): b. New one because of new Business/Department c. Additional manpower in existing business division d. For Temporary period (please mention the no. of months

Specify in detail the reason for the requirement in any of the above case/s: 5. JOB PROFILE a) Designation: b) Specify key responsibilities: (Plz mention the key words)

6. CANDIDATE PROFILE: (Success criteria while searching the profile) Basic Educational qualifications: Professional Qualification: No. of years of Experience:

APPROVALS
Deptt.Head Functional Head Director

Date Human Resources

Date

Date Date of receiving the ERF

POLICY NO : W/HR 004-05 SUBJECT : INDUCTION & ORIENTATION EFFECTIVE : 1st April2005

I. I N T R O D U C T I O N Induction is a systematic and formal procedure for integrating a new Employee in to the Organisation..It aims at giving all the relevant information to the new employee and making him adjust comfortably in the new environment of the Organisation. It is an structured orientation programme. which offers an excellent opportunity to new recruits to learn comprehensively about the organisation. II O B J E C T I V E O F I N D U C T I O N To ensure that a new employee settles down smoothly into organisation so that he reaches a standard level of performance as soon as possible. III S A L I E N T time. It eliminates the feelings of uneasiness, anxiety ,apprehensions etc. in the new employee. It familiarises the new Employee with the Business Goals, Organisation set up .its Operations, People etc so as to make him productive at the earliest. It enhances the image of the oraganisation as people friendly organisation. It helps in reducing the turnover of the employees IV. F O C U S O F I N D U C T I O N. B E N E F I T S

It gives maximum relevant information to the new employee in the shortest

Efforts have to be made by all concerned to integrate the Induction Process with the Goals and Objectives of the Organisation so as to make it result oriented and dynamic. INDUCTION & ORIENTATION

POLICY NO : W/HR 004-05 SUBJECT : INDUCTION & ORIENTATION EFFECTIVE : 1st April2005

V. S C O P E

OF I N D U C T I O N

The practice of Induction will be applicable to all new employees in the Management Level in Head office initially . Subsequently , this process will be extended to Regions VI . I N D U C T I O N MODULE

A Model Induction Module is attached covering HO and the Shahpur Plant ( Annexure I )

VII. R E S P O N S I B I L I T Y G M HR shall be responsible for administering the process of Induction.

IX. M E T H O D O F I M P L E M E N T A T I O N

An appropriate Induction Schedule shall be prepared by HR just after the selected employee confirms his date of joining. The prepared Induction Schedule shall be sent to all concerned well in advance and a copy of it has to be given to the new employee on the day of his joining the organisation along with the guidance as how to go about it..
X. ROLE O F T H E I N D U C T E E

The Inductee shall undergo the Induction in accordance with the Induction Schedule given to him. The Inductee is required to prepare a brief report on his Induction .and submit it to the HR on completion of the Induction Process.

INDUCTION & ORIENTATION

I INDUCTION Day I, Head Office: S. Process N o 01 Human Resources Responsibility GM- HR/HR Co -ordinator Area of Coverage Joining Formalities Organisational Set Up HR Policies & Role of HR in Organisation Overview of the Group Organisational History Its Mission, Product Business Goals, Culture ,Values etc. An Overview of the Process Sales and Service Strategy Sales & Service Set-Up Advertising & Sales Promotion Product Range & Key Customers An Overview of the Process Role of the Process in the Organisation The Structure. Introduction to Team Members SAP & IT Operations A Familiarisation with the Function Introduction with the Team Members An Overview of the Division Time Lines 10.a.m- 11 a.m. MODULE.

02 A Meeting with Chairman/Directors

GM-HR/ HR Co-ordinator

11 a.m.-12 .

03 Sales & Service

V.P. (Sales & Service )

12. 1.30 pm

03 Accounts & Finance

GM ( Accounts & Finance )

2.30 pm 3.30 pm

04 Procurement

GM - Purchase

3.30 pm 4 pm

05 Speciality Product Division

Business Head

4.30 pm 5 pm

IN D U C T I O N

MODULE

Day II Plant Visit:

SNo. 06 Plant Intercool Western Responsibility Area of Coverage An Overview of the Plant Introduction to Section Heads Manufacturing Process Product Range Production Planning Material Management R & D Activities Time Lines 10 am 4 pm.

GM Plant/ Executive - HR . .

POLICY NO : W/HR 005-05 SUBJECT : PROBATION & CONFIRMATION EFFECTIVE : 1st April2005

PURPOSE : 1. To set and clarify work performance standards for new employees. 2. To determine whether or not they meet the standards required for continued employment. POLICY : 1 All employees up to GM , will be on Probation for a period of six months from the date of their joining. 2. During the Probationary Period, the following factors will be closely monitored. a His/Her Knowledge, Skills and Deliverables b His/Her Attitude towards work and the organization c d e 3 His/Her Behaviour with Superiors and Peers His/Her Ability to adjust to the requirements of the job His/Her Adherence to the organization culture ,values and discipline

At the end of the probation period the employee will be considered for confirmation based on the Review Report of the Superior and the respective Departmental Head

PROCEDURE: Two weeks before the end of the probation period a Probation Review Report ( PRR ) will be sent to the department head, seeking a recommendation on the confirmation of the appointment. PROBATION & COFIRMATION

POLICY NO : W/HR 005-05 SUBJECT : PROBATION & CONFIRMATION EFFECTIVE : 1st April2005

There are three possible recommendations :

A Appointment should be confirmed as per the due date in accordance with the Appointment Letter B . The appointment should be extended further for a specified number of months , advising the employee to improve upon his shortcomings / weak areas. C . The appointment should be terminated . This exercise has to be necessarily done before the expiry of the probation period The recommendations must be shown to, discussed with and duly signed by the Functional Head by the Immediate Superior prior to being forwarded to HR for action In providing Feedback the Superior should : a. Express his concerns clearly without undue delay and in appropriate circumstances b. Focus on critical areas. c Acknowledge good work performance

Providing Performance Feedback to the Probationer and taking his signature on the P R R by the Superior and is very important and essential . 4 Extension of Probation : a. The probation period may be extended in weak cases at the sole discretion of the Management b. The probation period can be extended only at the original probation period c. Only one extension can be recommended and this can not exceed the duration of the original probationary period PROBATION & CONFIRMATION

POLICY NO : W/HR 005-05 SUBJECT : PROBATION & CONFIRMATION EFFECTIVE : 1st April2005

5 Termination of Employment : In reviewing such recommendations , the HR deptt should determine a. Whether the employee was given all the resources to perform b Whether the probationer had received adequate supervision and instruction to reach the expected standard of performance During this review the HR deptt. may consult with the Departmental Head, the immediate Supervisor or any other person considered appropriate.

CONFIRMATION
PURPOSE To build up the confidence and a sense of stability in the employee in the organization for a long term career POLICY : 1. An employee will be confirmed only after the successful completion of the probation period 2. Confirmation will be done after considering the successful completion of the probation period 3. Confirmation letter should reach the employee before the expiry of the last day of probation PROCEDURE: 1. The Probation Review Report shall be sent back to the HR deptt. atleast a week before the expiry of probation period 2. Along with conformation letter a copy of the new pay structure ( in case there is a revision in the same ) and other allowances will be sent to the employee

WESTERN
Name of the Probationer : Function Date of Joining :

GROUP
Designation Unit /Location : :

PROBATION REVIEW REPORT ( PRR ) : TO BE FILLED BY IMMEDIATE SUPERIOR

Confirmation due on :

No

Tasks Performed during the Probation Period

Rating

OVERALL

RATING

Rating : A - Excellent, B - Very Good, C - Good , D - Average , E Poor Personal Area 1 2 3 4 5 6 7 8 9 10 Attributes ( Pl. tick in appropriate column.) Excellent V.Good Good Average Poor

Attendance Functional Knowledge Interpersonal Communication Team Work/ Integration with Team Initiative Integrity Decision Making Goal/ Task Orientation Learning & Sharing Abilit Adherence to Org. Culture and Values Decision to Confirm : (Pl. Tick ) Confirm / Extend by Months / Wrong Recruitment Reconsider Designation, Compensation Location, Function

Comments on the Probationers suitability to the present assignment/job

Name of the Probationer

Signature with Date : Signature with Date : Signature with Date :

Name of Immediate Superior : Name of the Department Head :

Signature and comments of : GM - HR

Directors Signature :

PROBATION & CONFIRMATION

POLICY NO : W/HR 006-05 SUBJECT : PERFORMANCE APPRAISAL EFFECTIVE : 1st April2005

PERFORMANCE

REVIEW

& DEVELOPMENT PLAN

PRDP Today we nurture the belief that our most valuable resource is the Human Capital. With this in mind , we introduce a Performance Management Process Performance Review & Development Plan that believes in Self Assessment, Performance Feedback, Reward and Recognition Training & Development thereby, facilitating Career Planning , Succession Planning and Talent Management The Performance Review & Development Plan basically is an open , participative and development oriented tool to facilitate performance management and employee development in the organisation.

PURPOS E
To create and foster a performance oriented culture To provide a platform where Appraisee & Appraiser plan together and finalise the Key Result areas and measurable outcomes providing direction and role clarity Proper annual evaluation of performance & competencies and reward and recognise the same accordingly Feedback to the Appraisee in a positive manner about his current level of performance strengths and areas requiring improvement in order to facilitate the overall development of the employee To identify the training and development needs of the employees To assess the potential of an employee To build an organisational culture where employees feel free to discuss their aspirations, problems and support required. To effect Promotions and Pay Rise based on Competence

PERFORMANCE APPRAISAL POLICY NO : W/HR 006-05 SUBJECT : PERFORMANCE APPRAISAL EFFECTIVE : 1st April2005

A. IMPORTANT DEFINITIONS APPRAISEE : Is the one whose performance is to be assessed over one appraisal cycle APPRAISER : Is the immediate reporting officer of the Appraisee .He is directly responsible for the daily monitoring of all the activities of the Appraisee REVIEWER: Is the Functional Head of the Deptt. He is the reporting person of the Appraiser KRA : Key Result Area is thrust area or the area of importance dictated by the functional & organisational Goals. It is an area of focus that calls for appraisees time, attention & resource.In short it summarises the critical areas of the appraisees job profile B. PERIOD OF THE PERFORMANCE APPRAISAL Performance Review Period will be from April March ( Financial Year ) and the Increments will be effective from Ist April Performance Appraisal will be an Annual Exercise . C. PROCESS OF PERFORMANCE APPRAISAL I. Sending the PRDP Format The PRDP will be sent to all eligible employees directly on email in the month of March. II Design / Contents of the PRDP Form The PRDP consists of the following sections Performance Evaluation Competence Evaluation Recommendations Development Plan Goal Setting

PERFORMANCE APPRAISAL POLICY NO : W/HR 006-05 SUBJECT : PERFORMANCE APPRAISAL EFFECTIVE : 1st April2005

III Filling the PRDP Form

STEP - I On receipt of the PRDP Form the employee will fill in the Personal Details and list down the Key Result Areas . STEP II The individual employee will Appraise himself , on the given dimensions .This is to provide the employee a chance to state without any inhibition /reservation , his achievements and areas of improvement .The employee should have a rationale for his self assessment STEP III. The Appraiser will review the above assessment and based on his own observations rate the employee .In case the supervisor disagrees with the self rating given by the employee ,then the Appraiser will give a rationale in writing for the difference in opinion STEP IV Discussions shall be held between the employee and the Supervisor for Career Planning, Identification of Training Needs ,Job Rotation etc. STEP V The PRDP will be forwarded to the HR Deptt. by the Appraiser for calculating the consolidated final ratings STEP VI HR Deptt . after calculating the Consolidated Rating shall submit proposal to the Reviewer /Approving Authority. The Reviewer /Approving Authority shall then decide the Future course of action to be taken in terms of Increments, Promotion , Transfer, Training etc.

IMPORTANT
The PRDP Form has to be compulsorily returned to the HR deptt. within 15 days of receipt of the form. No overwriting or cutting of entries will be acceptable All entries have to be made in pen

PERFORMANCE APPRAISAL POLICY NO : W/HR 006-05 SUBJECT : PERFORMANCE APPRAISAL EFFECTIVE : 1st April2005

The whole appraisal system is based on a very comprehensive and exhaustive understanding of the role and contributions by the Appraisee. The Appraiser has to be forthright ,frank, unbiased ,impartial and unguided by solo incidents during the review period .There has to be true understanding between the Appraiser and the Appraisee on their respective roles.

HR Deptt. will be responsible for the successful implementation of the Performance Management Process. Towards this end it will train and hence facilitate Line Managers to conduct the Performance Appraisal Process with the right kind of attitude, stance,accuracy and last but not the least the sensitivity that it deserves

PERFORMANCE APPRAISAL

POLICY NO : W/HR 007-05 SUBJECT : TRAINING & DEVELOPMENT EFFECTIVE : 1st April2005 I NT R O D U C T I O N Training is a process of helping employees to enhance their competence in a planned and systematic manner. Todays organisation are opearting in a fast changing environment. The skills of the employees are to be continuously updated in tune with the requirements. Training fills the gap between the present level of performance and the expected level of performance. Training has to be need based, Business focussed , well planned, well and well evaluated. PURPOSE .To encourage employees to recognize, develop and use their skill and abilities To improve opportunities for career advancement To assist in adjusting to technological and organisational change To encourage employees to achieve continuous improvement in work administered

PROCEDURE: I IDENTIFICATION OF TRAINING NEED The activity of identification of training needs shall be done once in a year for training to be provided during April to March .The need identification shall be done through Annual Performance Appraisal : ( Individual Needs )

Directives from Directors/Functional /Unit Heads: (Business Needs)

TRAINING & DEVELOPMENT

POLICY NO : W/HR 007-05 SUBJECT : TRAINING & DEVELOPMENT EFFECTIVE : 1st April2005 II CLASSIFICATION OF TRAINING NEEDS Individual Training Needs evolved from Performance Appraisal shall be classified into two Categories : IA Technical Training : All Job /Work related training need shall come under Technical training.

IB Behavioural Training: All training needs related to employees behaviour & attitude shall come under Behavioural Training. II. Business Needs Training:All Organisational Training Requirements mainly based on the new trends shall come under Business Needs Training. III COMPILATION & PRIORATOSATION OF TRAINING NEEDS : Training needs evolved shall be compiled and prioratised. Prioratisation of needs shall be done keeping into consideration two principles: a. Organisational Needs ( Critical Areas)

b. Majority of areas commonly identified by more number of people. IV PREPARATION OF TRAINING CALENDAR : Training Calendar shall be prepared by properly scheduling the programmes. as per prioratisation and it shall be circulated to all Functional Heads .

TRAINING & DEVELOPMENT

POLICY NO : W/HR 007-05 SUBJECT : TRAINING & DEVELOPMENT EFFECTIVE : 1st April2005

GENERAL It is the responsibility of the concerned deptt. to ensure that the subordinates undergo the specified Training .Once it is decided to nominate any employee for a training programme , it will be the responsibility of the HOD to relieve him for such programme. HR deptt. must ensure that the employees are trained to levels appropriate to their roles in order to perform effectively in the best interest of themselves , of other and of the organization. During the year 2005-2006 it is envisaged that each employee undergoes at least 8 hours of Training. Training programmes can be organized in house and for specialized training employees can be sent to external venues

TRAINING & DEVELOPMENT

POLICY NO : W/HR 008-05 SUBJECT : ISSUE OF OFFER/APPOINTMENT LETTERS EFFECTIVE : 1st April2005 HR POLICY ON ISSUE OF OFFER LETTER / APPOINTMENT LETTER AND OTHER LETTERS PURPOSE 1. 2. To document the relationship between the Company and the Employee To serve the purpose to define the Service Conditions.

POLICY 1. 2. 3. On selection of a candidate, an Appointment Offer letter will be issued . On receipt of the Offer the candidate has to immediately tender his resignation in his existing organization and send a copy of the same to the HR. Joining time beyond one month will not be entertained. In special cases reimbursement up to one months salary to take care of the notice period will be considered. Appointment letter would be issued at the time of joining within a week after submission of all required documents. Offer letter will be signed by the Director / GM HR All Appointment letter up to the position of Manager ( ML- 4 ) will be signed GM HR All Appointment Letter for AGM and above ( ML-5 and above ) will be signed by the Director Operations

4. 5. 6

8. All Appointments have to carry the approval of the Director

ISSUE OF OFFER/APPOINTMENT LETTERS POLICY NO : W/HR 008-05 SUBJECT : ISSUE OF OFFER/APPOINTMENT LETTERS EFFECTIVE : 1st April2005

Confirmation letter would be signed by the GM HR once the Probation Review Report ( PRR ) is signed by the HOD and the Directors

10 . Any Service /Salary certificate will be issued by the HR Deptt. , if requested by the employee .However , the employee has to clearly indicate the reasons for which the certificate is required. The language of the certificate will be as decided by the HR Deptt. and not as decided by the employee.

11. Under any circumstances , the company will not issue any certificate , which is a guarantee for a loan / advance from any institution .No involvement of the company will be considered for any financial dealings by the employee.

ISSUE OF OFFER/APPOINTMENT LETTERS

POLICY NO : W/HR 0009-05 SUBJECT : ATTENDANCE RULES EFFECTIVE : 1st April2005

ATTENDANCE
PURPOSE : To prescribe the basic guidelines for adherence to office discipline

POLICY
I. All employees are to report at their designated workplace at 9.25 a.m. on all working days . The working hours would be from 9.30 am to 6 pm with a lunch break from 1.30 pm to 2 pm ( HO & Branches )

II. All employees are required to mark their daily attendance in the register at reception counter. This is mandatory before they proceed to their respective workplaces. III There will be a " Red Cross Mark" after 9.30 AM and the Attendance Register will be shifted to the HR /Admin IV Employees reporting for duty between 9.30 and 9.45 will be considered "Late" . Three late marks in a month will be liable for deduction of 1/2 day Casual Leave and 5 late marks in a month will be liable for deduction of 1 day C L . V Employees reporting for duty between 9.45 and 10 will be considered "Super Late" .Two marks in a month will be liable or 1/2 day CL deduction and 3 Marks in a month will be liable to one day CL deduction .

VI . In case there is no CL in the account then LWP will be considered with reference to point IV and V . VII Reporting for duty after 10 am to 1.30 pm will be considered as half day.

VIII. All employees leaving the workplace before the scheduled closing hours for official work will submit a written approval from HOD. This has to be submitted to the HR deptt. on the same day before leaving office ATTENDANCE RULES

POLICY NO : W/HR 0009-05 SUBJECT : ATTENDANCE RULES EFFECTIVE : 1st April2005

IX. It is the sole responsibility of the employee to check on his daily attendance /late coming /approvals etc.In the absence of the written approval ,the HR deptt. will treat the employee as Absent and effect necessary deductions. X. All entries in the attendance register other than the employees signature that is late coming , early going , leave outdoor duty have to be marked by the HR Deptt. only XI. No employee should tamper with the attendance register by making self entries. XII. Tampering with the Attendance Register will be treated as gross misconduct and the concerned employee will be liable for disciplinary action . XIII. HR deptt. will not effect condoning for late coming /early going without a written approval from the concerned HOD on the same day .

Rules applicable to late attendance at a Glance Upto 30 minutes 30 minutes - 4 hours More than 4 hours Employee is late Employee is absent for half a day Employee is absent for full day

ATTENDANCE RULES

POLICY NO : W/HR 0010-05 SUBJECT : LEAVE RULES EFFECTIVE : 1st April2005 An Employee is entitled to Three Categories of Leave as under : S No. 01 02 03 04 I. TYPE OF LEAVE CASUAL LEAVE SICK LEAVE PRIVILEGE LEAVE MATERNITY LEAVE PURPOSE Meant for taking demands of social environment Meant for taking care during illness Meant for taking rest & revitalisation Meant for taking care of the child birth

Grant of leave shall depend on the exigencies of the establishment and shall be at the discretion of the Management. Holidays declared by Management and weekly holidays can either be Prefixed or Suffixed ( Prefixing & Suffixing both is not permitted ) CASUAL LEAVE : A permanent employee is entitled for 7 days Casual Leave per year This leave is intended to meet special or unforseen circumstances Limited to maximum 3 days at a time. Non Cumulative and cannot be combined with any other leave . To be credited to the permanent employees leave Account on 1st January every year , or On the date of confirmation of service , proportionate to the period upto 31st December , from date of joining. EXAMPLE 1 :Date of Joining : 01.04.2004 Date of Confirmation : 01.10.2004 Leave Credited on : 01.10.2004 FOR 7 * 9 / 12 = 5.25 DAYS Any fraction to be converted to next full integer , hence 6 days. EXAMPLE 2 Date of Joining : Date of Confirmation : Leave Credited on : 07 days 01.07.2000 01.01.2001 01.01.2001

POLICY NO : W/HR 0010-05 SUBJECT : LEAVE RULES EFFECTIVE : 1st April2005 As far as possible leave application in the prescribed form should be submitted to Departmental Head /Locational Head and sanction obtained in advance .Whenever this is not practicable , message should reach Departmental Head / Locational Head as early as possible and leave application submitted immediately after resuming duty .

II

SICK LEAVE
A permanent employee is entitled for 5 days Sick Leave per year

In case of Sick Leave for more than 3 days , a medical certificate from a registered practitioner , in support of the same should be submitted at the time of resuming duty . The unavailed Sick Leave can be accumulated maximum up to 15 days. To be credited to the permanent employees leave Account on 1st January every year , or On the date of confirmation of service , proportionate to the period upto 31st December , from date of joining. EXAMPLE 1 :
Leave Credited on

Date of joining : Date of Confirmation :

: 01.10.2004

01.04.2004 01.10.2004

FOR 5 * 9 / 12 = 3.75 DAYS Any fraction to be converted to next full integer hence 4 days. (If he is not availed any leave from 1.4.2000 to 31.12.2000 than as on 1.1.2001 leave credited is 9 days) EXAMPLE 2 :Date of joining : 01.07.2000 Date of Confirmation : 01.01.2001 Leave Credited on : 01.01.2001 As on 01.01.2001 leave credited is 3 days for 2000 & 5 days of 2001, total leave is 8 days

. III.. year PRIVILEGE LEAVE A permanent employee is entitled for 21 days Privilege Leave per A person employed in the establishment shall be entitled to take this leave only after twelve months of continuous service This leave shall be credited to the leave account on 1st January every year proportionate to the number of days worked in the previous year. EXAMPLE 3 Date of Joining :01.04.2000 Leave Credited on 01.01.2001 For 21*9/12 = 15.75 days Any fraction to be converted to the next full integer , hence 16 days

Entitlement begins only on 01.04.2001

Privilege leave shall be limited to Minimum 4 days Maximum 3 times in a year

at a time

Any employee wants to go on PL for more than 5 days , application in the prescribed form should be made at least 15 days , prior to the commencement of the leave applied for & it should be approved / sanction by Dept Head. The unavailed PL can be accumulated maximum upto 50 days However , one can be allowed to accumulate the said leave for more than the prescribed limit, if the application for leave has been given and the same has been refused by the Management . Leave beyond 15 days can be encashed once in a year in the month of January at the rate of last drawn basic salary as on December 31 of the preceeding year .In case of separation , leave encashment shall be calculated on basic Salary subject to a maximum of 50 PL.

IV .MATERNITY LEAVE

Female employees not covered under ESI will be given Maternity Leave of six weeks ( three weeks before child birth and three weeks after ) twice during the service.

POLICY NO : W/HR 0011-05 SUBJECT : PAID HOLIDAY EFFECTIVE : 1st April2005

I. II

There would be 10 ( ten ) paid holidays in a calendar year The proposed list of paid holidays for the ensuing year will be submitted by all the branch offices / Plants to the HR Deptt. by 26th December every year

III HR Deptt. will consolidate the proposals from all locations and correlate Holidays,as may be observed by the Head too. On completion of this exercise, the HR deptt. will communicate the approval list of paid holidays to each branch by 26th December. IV Each location has to ensure that the National Holidays have to be compulsorily included in the proposal V A fair amount of consideration will also be given to local festivals .However, the number of Paid Holidays will have to remain 10 ( ten ) only

VI The Head Office shall also observe 10 ( ten ) paid holidays VII No employees will be asked to work in a paid holiday .

PAID HOLIDAY

POLICY NO : W/HR 0012-05 SUBJECT : COMPENSATORY OFF RULES EFFECTIVE : 1st April2005

All the Employees up to Level II , Asst Manager are eligible for a Compensatory off against the days they work the full day on Sundays or any Annual Holidays declared as per our circular. Half day or less than half day of work on a Holiday will not entitle an employee for C . Off The C. Off has to be claimed within three months of having worked on a Holiday . If not claimed within three months then it will get lapsed. The C. Off can not be claimed as a matter of right as per the convenience of the Employee It has to be sanctioned by the Deptt. Head / Section Head as per his discretion keeping into consideration the work requirements The C. Off can be prefixed or suffixed with Casual Leave only and not with SL or PL

COMPENSATORY OFF RULES POLICY NO : W/HR 0013-05 SUBJECT : TRAVEL RULES EFFECTIVE : 1st April2005

Rates of Allowance For Boarding and Lodging

Sr. No 1 Level ML5/ML -6 ML-4 ML-3 ML-3 ML-2 ML-1 SL-3 SL-2 SL-1 Category *VP/ GM Lodging Allowances ( Stay ) Metros Act. A Act. B Act C Act. Boarding Allowance (D.A) Metros Act. A Act . 250 235 200 175 155 150 140 125 110 B Act. C Act.

2 3 4 5 6 7 8 9 10

DGM/AGM Sr. Manager / RSM Manager / Branch Manager Asst. Manager Executive Officer/Supervisor/A ccountant/Engineer Sr.Technician/Assista nt/Secretary Technician/Store Keeper

1675 1400 1200 950 800 600 500 350 300

1300 1100 1000 800 700 500 350 300 250

1100

900 800 700 600 500 350 250 200 200

300 275 225 200 180 175 150 140 125

200 175 160 150 145 140 125 110 100

175 150 135 125 125 125 110 100 80

900 800 700 600 400 300 250 225

All other excluding .whatever mentioned here above

* Excluding Five-Star Hotels in metros & Five star deluxe Hotels at all places. Room rent in range of Rs.2000 /- per day, excluding all taxes.

TRAVEL RULES

POLICY NO : W/HR 0013-05 SUBJECT : TRAVEL RULES EFFECTIVE : 1st April2005 TA / DA Rules Mode & Class of Travel
Sr.N o 1 2 3 4 5 Level ML-5 /ML-6 ML-4 ML- 3 ML-3 ML-1 & ML-2 SL-3 Category *Vice President / GM AGM / DGM Sr. Manager / RSM Manager /Branch Manager Asst. Manager/Executive Mode of Travel (By shortest route) Train (any class) / Flight (Economy Class) Train AC 2nd class, Flight (Economy class) in case of emergency Train AC 2nd Class, Flight (Economy Class ) in case of emergency Train AC 2nd class / Luxury Bus Train IIIrd Tier /Luxury Bus Train 2nd class /Luxury Bus Conveyance (Please ensure economy) Taxi Taxi /Autorikshaw Taxi / Autorikshaw Taxi /Autorikshaw Auotrikshaw/Local Train 1st class /City Bus (Taxi only in metros) Auotrikshaw/Local Train 2nd class /City Bus (Taxi only in metros) Auotrikshaw/Local Train /City Bus Auotrikshaw/Local Train /City Bus Cycle Rikshaw/Local Train 2nd class/City bus

Officer/Supervisor/ Coordinator/Accountant/Eng ineer Sr.Technician/Assistant/S ecretary Technician/Store Keeper

7 8 9

SL-2 SL-1

All other excluding whatever mentioned hereabove

Train 2nd class/Luxury Bus (Non-A.C) Train 2nd class/Luxury Bus (Non-A.C) Train 2nd class /Bus

*Train: Wherever night trains are available and / or the train journey is less than 12 hours, train travel should be preferred instead of air.

TRAVEL RULES

POLICY NO : W/HR 0013-05 SUBJECT : TRAVEL RULES EFFECTIVE : 1st April2005 TA / DA Rules Classification of Cities
CLASS Metros A B C CITIES Mumbai, Calcutta, Delhi, Chennai, Bangalore Hyderabad, Pune, Ahmedabad, Chandigarh Lucknow, Guwahati, Jaipur, Cochin, Indore,Baroda, Coimbatore ,Patna,Panaji Kanpur & all other State capitals All other cities excluding whatever mentioned herein above

GUIDELINES: 1.If two or more employees are on tour at the same destination, then they have to share a room. Lodging will be reimbursed only against bills (local taxes extra) 2.Boarding includes Food, Laundry tips, Local Calls without bills etc. 3.Departure for tour/return from tour is as per given scheduled, then D.A shall be sanctioned, as per given rate: a. b. c. d. Less than 6 hours Nil 6hrs 12hrs. @ 50% of the Total D.A 12 18hrs. @ 75% of the Total D.A 18 24 hrs @ 100% of the Total D.A

4.Whenever employee goes on tour (External Training / Factory Visits / Office Visits) and if meals are provided by the company, Institute/Branch Office or complementary meal is provided, Then 25% of the Boarding Allowance (per meal) will be deducted provided by the hotel, then 25% of the Boarding Allowance (per meal) shall be deducted. 5.If the out door duty is more than 15 days at a time, and employee has informed well in advance, then the said period shall be treated as a deputation and accordingly the concerned employee shall be paid deputation allowance and other allowances, as specified in the transfer policy.

TRAVEL RULES POLICY NO : W/HR 0013-05 SUBJECT : TRAVEL RULES EFFECTIVE : 1st April2005

6.Unless eligible, employees are not permitted to use taxi. However, it is permitted in exceptional cases, where the material is too large to carry or the material weighs more than 15 kgs. In such cases, H O Ds /Branch In- charges approval is required. 7.In case, any one makes his own arrangement for staying, he may claim 25% of the sanctioned Loading allowance or Rs.250/- whichever is less for ML-1 & above grades and Rs.150 /- for rest all grades, whichever is less. For this the condition of submission of bills is relaxed.Employees staying at their own residence are not permitted to take said allowance. 8.An employee shall not be entitled for D.A, when he is traveling within a radius of 100 K.M from his place of working. However, in such cases, he shall be paid @ 50% of eligible D.A, as per the rules for outdorr duty more than 12 hrs & above. 9.Confirmed Train Tickets should not be converted in to next class of tickets. 10.Booking Charges subject to production of bill of the agency. 11.Payments to TTE is discouraged and is allowed only in emergency and exceptional cases. 12.Penalty of late submission of Traveling Bills to be imposed as follows: SUBMISSION AFTER TOUR DATE a. 8 to 10 days b. 11 to 20 days c. 21 to 30 days d. More than one month- Bill shall not be acceptable. PENALTY AMONUT Rs.25/- per day from day one 25% of the total bill amount 50% of the total bill amount No Bill to be passed

13.Entertainment expenses are strictly banned. Visited employee should neither entertain anybody nor should accept entertainment expenses from the person visiting the branch. TRAVEL RULES

POLICY NO : W/HR 0014-05 SUBJECT : LOCAL CONVEYANCE RULES EFFECTIVE : 1st April2005

LOCAL TRAVEL REIMBURSEMENT The amount of Local Conveyance Expenses incurred for official work shall be reimbursed as mentioned below :

4 Wheeler @Rs.4.00 per KM ( All Inclusive )

2 Wheeler @ Rs.1.75 per KM ( All Inclusive )

The local conveyance reimbursement shall be done on submission of details pertaining to local visit in KM , purpose of visit , date, time etc. The conveyance expenses shall not be reimbursed if the said details are not submitted with the approval of the deptt. heads

LOCAL CONVEYANCE RULES

POLICY NO : W/HR 0015-05 SUBJECT EFFECTIVE : CELL PHONE POLICY : 1st April2005

PURPOSE To have a cost effective communication system across the organisation to facilitate the business related transactions.

POLICY The Company has entered into a corporate tie up with Air Tel The company will provide hand set to employees as per the recommendations of the Functional Deptt/ Branch Heads.

The ceiling of the monthly cell phone bill is as under category wise : SNo 1 2 3 4 5 6 Category VP GM/DGM/AGM Sr. Manager/ RSM Managers/ Asst Managers Executive / Officers / Engineers Assistant /Technician Ceiling Rs.5,000/Rs.4,000/Rs.3,000/Rs.2,500/-( Field ) Rs.1250 (Non Field ) Rs.1,500/-( Field ) Rs.750 ( Non Field ) Rs. 500/-

The employees are required to highlight the personal calls on the monthly statement and that will be debited to their account .

CELL PHONE POLICY POLICY NO : W/HR 0016-05 SUBJECT : LOAN POLICY EFFECTIVE : 1st April2005

The Management of the Company would extend the loan facility to the eligible employees for specific purposes with specific recovery guidelines w e f 1.04.2005. A. SALARY LOAN

Eligibility : The Employee has to be confirmed on the regular rolls of the company However, the sanctioning of loan shall be at the discretion of the Management taking into consideration fund availability/financial status, employee performance etc. Purpose of the Loan : Applicants or his family members Marriage ( brother /sister ) Medical Treatment ( Spouse / Brother /Sister /Parents/ Children) Education ( Children /Self ) and other emergencies .

The employee has to submit the supporting documents for availing the loan .HR Deptt. will not consider the application in absence of the supporting document. Deptt. Head recommendation is essential for sanctioning the loan.

AMOUNT OF LOAN Three Times of the basic Salary up to a maximum amount of Rs.20,000/- ( Rs. Twenty Thousand ) will be sanctioned as loan. THE RECOVERY The sanctioned loan will be recovered in maximum 10 installments A gap of 24 months has to be maintained from the last installment deducted till the fresh application for second salary loan

LOAN POLICY

POLICY NO : W/HR 0016-05 SUBJECT : LOAN POLICY EFFECTIVE : 1st April2005 B. TWO WHEELER LOAN Two wheeler loan is applicable to Officer to Asst Manager Category ( SL-I ML-II ) having experience of at least 3 years with the Group. The details are as under : Level SL-I to SL-III ML I & ML- II . Amount 10,000/20,000/Installments 18 24

Two Wheeler Loan will be granted with Interest @10 % p a or without interest rate solely at the management discretion taking into consideration the merit of the case and priorities The Interest on loan will be 10 % p a.

C .CAR LOAN Car Loan will be applicable to Manager and above category ( ML-III to ML V ) having experience of at least 5 years with the Group Level ML-III ML-IV ML-V Amount 50,000 75,000 1,00,000 Installments 36 48 60

Car Loan will be granted with Interest @10 % p a or without interest rate solely at the management discretion taking into consideration the merit of the case and priorities.

LOAN POLICY

POLICY NO : W/HR 0016-05 SUBJECT : LOAN POLICY EFFECTIVE : 1st April2005 D) HOUSING LOAN The Housing loan will be applicable to the employees having at least 5 years with the Group Level SL-I to ML-I ML -II ML-III Ml -IV ML-V& VI Amount 25,000 50,000 75,000 1,00,000 1,50,000 Installments 60 60 60 60 60

Housing Loan will be granted with Interest @90 % p a or without interest rate solely at the management discretion taking into consideration the merit of the case and priorities. Housing loan can be taken only once .

Any deviation from the Policy, as matter of special consideration will be the prerogative of the Directors only. SALARY ADVANCE In case of unforeseen /urgent domestic expenses an advance up to 70% of the take home salary can be granted and the advance amount shall be recovered from the same month salary.This facility shall be made available only in exceptional cases for ex. Once in a year Such advance shall be given between 15th and 20th of every month with prior approval of the Deptt./Branch Head.

LOAN POLICY

POLICY NO : W/HR 0017-05 SUBJECT : TRANSFER POLICY EFFECTIVE : 1st April2005

OBJECTIVES OF TRANSFER In order to achieve the business goals and objectives, the organization needs to have employees with varied skills and exposure at more than one establishment. We believe that Human Talent is our most valuable asset and it should not be monopolized and stifled in specific pockets within the organization. For the employee, transfers would provide further learning opportunities and varied experience for growth. At the same time, we recognize the inconvenience and hardships caused to the employee and his family due to transfers between locations. In order to minimize these hardships the company lays down this Transfer Policy. ENTITLEMENTS ON TRANSFER An employee will be entitled to the following on being transferred from one city/town location to another a) Resettlement Leaves b) Travel Related Reimbursements c) Resettlement Allowance d) Reimbursement for transporting household articles e) Halting Allowance f) Scouting Trip Expenses g) School/ College Admission Cost

TRANSFER POLICY

POLICY NO : W/HR 0017-05 SUBJECT : TRANSFER POLICY EFFECTIVE : 1st April2005 In case the transfer has been requested by the employee of his own accord, he will be entitled only to Travel related reimbursement Travel time spent in traveling to the place of posting will be considered as paid leave. A) RESETTLEMENT LEAVES An employee will be entitled to a maximum of extra paid 6 days leaves in order to facilitate all activities connected with resettlement to a new place, including actual travel time involved. The employee should avail of this leave within 3 months of the date of the transfer letter, but not later than one month of reporting for work at the new location. B) TRAVEL RELATED REIMBURSEMENT. The transferred employee and his family (*) will be entitled to travel reimbursements for moving to the new location, against submission of a copy of the train ticket/original air ticket (as per the Grade Eligibility), as well as bill and receipt of Travel Agent (if applicable). (*) The term family includes only spouse and dependent Children. Local conveyance expenses incurred for the purpose of the journey will be reimbursed on actual. C) RESETTLEMENT ALLOWANCE To take care of incidental expenses on relocation to a new place, the employee will be entitled to one months basic salary as resettlement allowance. This allowance can be claimed by the employee after he shifts to the new location. This allowance will be treated as income and therefore, will be fully taxable. The consolidated basic salary applicable will be the last salary drawn at the old location.

TRANSFER POLICY

POLICY NO : W/HR 0017-05 SUBJECT : TRANSFER POLICY EFFECTIVE : 1st April2005

D) REIMBURSEMENT for transporting household articles including ( Packing, Insurance, Octroi , Loading and Un-loading charges ) The transferred employee will be entitled to claim actual expenses on cartage (including loading and unloading charges) of his household effects to the new location subject to a maximum of one truck load in case of employees up to ML- IV a maximum of two truck loads in case of employees in ML V & ML VI . The employee has to get a minimum of two quotations for this purpose and send them to the HR department for prior sanction. In case the quotation reaches HR department at least one week before the date of transfer, the company can prepare a cheque and send it to the transferred employee. Otherwise, the employee will have to pay the transportation charges directly and take reimbursement later from the company on submission of the bill. E) HALTING ALLOWANCE Where an employee cannot move into a house immediately on reaching the new location, for reasons beyond his control, he and his family would be entitled to stay in a hotel for a maximum of up to 7 days. Expenses will not be reimbursed beyond this maximum allowable stay of 7 days. The employee must submit stamped bills and receipt/ credit card slip for the actual expenses on lodging and boarding, in order to claim reimbursement. Theses expense will be reimbursed as per the Grade Eligibility.

TRANSFER POLICY

POLICY NO : W/HR 0017-05 SUBJECT : TRANSFER POLICY EFFECTIVE : 1st April2005

F) SCOUTING TRIP EXPENSES An employee who is transferred may be allowed to make one trip to his new place of posting before the date of the actual transfer, for the purpose of Accommodation /Admission or Admission Interview of school/ college going children. The employee will be entitled to stay at the new location for a maximum of 3 days for the purposes mentioned above.

G) SCHOOL / COLLEGE ADMISSION COST In case of a transferred employee having school/college going children, the employee can claim donations or non-refundable deposits or one time admission fee that he may have to pay (for admission only). These will be reimbursed on actual on production of a proper receipt, subject to a maximum of Rs. 5000/- per child for two children. The regular school/college term fees, tuition fees, etc. will not be entitled for this reimbursement.

TRANSFER POLICY

POLICY NO : W/HR 0018-05 SUBJECT : CITY COMPENSATORY ALLOWANCE EFFECTIVE : 1st April2005 City Compensatory Allowance ( CCA ) shall be granted to the employee on their transfer / reallocation of duties to the new location.The CCA shall be paid as per the table given below in addition to gross salary till the time he is working at the transferred location S No 1 2 3 4 5 6 7 8 9 Level M-V& VI M-IV M-IV M-III M-II M-I S-III SL-II SL-I Metro 4000/3000/2000/1800 1600/1400/1200/800/600/A-Class 3000/2000/1600/1400 1200/1200/800/600/500/B-Class 2000/1800/1200/1100/1000/900/600/500/400/800/800/500/400/350/C-Class -

The CCA stands withdrawn , if the said employee is transferred back to his original place or any other location .However, for new location CCA will be decided taking into consideration Class of the city Under any circumstances CCA can not be merged with Salary in case of Transfer /promotion etc. However, CCA amount shall be considered under the cost of the company concept while evaluating performance of the employee The CCA shall not be applicable if the concerned employees transfer is approved on his personal request /transfer to native place etc. The transferred employee will have to make staying arrangements with the help of CCA provided in addition to his salary as the employee is already working in particular class of city/ level Grade for which compensation is fixed and paid as mutually agreed . In case the employee is transferred on account of non-performance .poor discipline etc. CCA shall not be paid.

CITY COMPENSATORY ALLOWANCE

POLICY NO : W/HR 0019-05 SUBJECT : GET TO-GETHER EFFECTIVE : 1st April2005

PURPOSE To provide an informal platform to the Employees for coming together and create a bonding which will have a positive effect in the work place also PROCEDURE

Employee

Get Together

will be organized on appropriate occasions on

Regional /Branch /Unit basis.

BUDGET Rs./- 250 per employee in a Financial Year .

GET TO- GETHER

POLICY NO : W/HR 0020-05 SUBJECT : MARRIAGE GIFT EFFECTIVE : 1st April2005

The confirmed employee shall be gifted a Gift Cheque on behalf of the management on the occasion of marriage GRADE Marriage Gift Cheque UP TO SL III OFFICER Rs.501/UP TO ML-III MANAGER Rs.1001/ML-IV & ABOVE AGM AND ABOVE Rs. 1501/-

The Gift Cheque shall be handed over to the concerned employee by his Deptt.Head / Immediate Superior wishing him on the occasion

MARRIAGE GIFT

POLICY NO : W/HR 0021-05 SUBJECT : BIRTHDAY CELEBRATION EFFECTIVE : 1st April2005

PURPOSE To provide a personal touch to the employee in the work place PROCEDURE HR Deptt. will send an E Greeting Card to all the employees on the occasion of his/her birthday and a copy of the Greeting will be put on the notice board for general information of colleagues.

BIRTHDAY CELEBRATION

POLICY NO : W/HR 0022-05 SUBJECT : PROFESSIONAL DEVELOPMENT EFFECTIVE : 1st April2005 OBJECTIVE : In order to encourage the Employees to make efforts for their self development Western Group is committed to support all initiatives for the Growth and Development of all employees. In order to promote the learning process Western is introducing a Professional Development Policy for the benefit of the employees POLICY 1. The company shall pay the 50 % of the fees of Course /Workshop undertaken by the employee up a maximum limit of Rs. 6,000/2. Special Leave up to a maximum 5 days shall be awarded to the employee for attending any Part Time / Full Time Course /Workshop in a year . Leave upto a maximum of 5 days will be granted for appearing in the examination . In case the number days of examination is less than 5 days then only that particular number of days shall be granted. PROCEDURE 1. Any employee who wishes to avail of this facility should apply in writing along with the details of the course content for permission to the HOD 2. This Application will then be forwarded to the HR Deptt .for further processing 3. The concerned HOD and HR Deptt. Shall certify that the course proposed to be undertaken by the employee is compatible with the Candidates Job profile & Growth Potential in the Organisation and that it will equip him with enhanced skills and knowledge 4. HR deptt. shall grant and reject the permission and the decision of the company will be the final

PROFESSIONAL DEVELOPMENT

POLICY NO : W/HR 0022-05 SUBJECT : PROFESSIONAL DEVELOPMENT EFFECTIVE : 1st April2005 5. If the application is approved by the management the employee will be required to submit the receipt of the payment of course fees and the examination fees after which the amount will be reimbursed to the employee 6. The candidate is required to inform at least 15 days in advance before proceeding on the special leave. 7. In case any employee who has been granted payment towards full time / part time course wishes to leave the company within a year the company will recover the fees paid by the company along with the leave salary. 8. This policy applies to those employees who have completed one year in the organisation

PROFESSIONAL DEVELOPMENT

POLICY NO : W/HR 0023-05 SUBJECT : PF / ITDS / EST EFFECTIVE : 1st April2005 PROVIDENT FUND 1.The Rule for PF is applicable if the organization is employing more that 20 people 2. The amount of PF is at the rate of 12 % of the basic salary 3. The PF Scheme is applicable to employees whose basic is equal or less 6,500 pm ITDS 1. The Income Tax Deduction would be as per the Income Tax Rules 2. At the beginning of the financial year , all employees are required to submit their investment details for that particular year .This is to enable the HR Deptt. to calculate the amount of I T D S. 3. In case no details are submitted ;all payments shall be construed as income 4. Proof of Investments has to be given as per the declaration before the close of the financial year EMPLOYEE STATE INSURANCE SCHEME 1.The ESI Scheme is applicable to employees who earn salary equal to or less that Rs. 7,500 /- per month 2. Under the ESI Act the Salary includes Basic Salary, House Rent Allowance 3. In certain states , the government has not extended the provision of the Act to all areas.If the office is located in the area ,where the provision of the act has not become applicable ; the employee will noit be covered by the act .This would be applicable even if his salary is less than or equal to Rs.6500/- per month. 3. A Contribution calculated @ 1.75% ( rounded off to the next higher multitude of 0.50 paise ) will be deducted from the salary of an employee covered under the ESI Act ..The Companys contribution to the same would be @4.75 % of the total wages ( rounded off to the next higher multitude of 0.50 paise. PF / ITDS / EST

POLICY NO : W/HR 0024-05 SUBJECT : RESIGNATION / TERMINATION EFFECTIVE : 1st April2005 RESIGNATION / TERMINATION / ABANDONMENT OF EMPLOYMENT R E S I G N A T I ON PURPOSE To outline the provisions relating to a staff members voluntary termination of services other than by retirement or abandonment of employment POLICY I An employee wishing to resign should forward a notice of resignation in writing through the relevant Department Head to the HR Deptt.

II. The company is not obliged to accept the resignation from the date proposed by the employee III. Failure to give the required period of notice may render the employee liable to forfeit the pay equivalent to the period of notice , as mentioned in the appointment letter . The salary for the purpose shall mean the basic salary IV The HR deptt. will consider the proposed cessation date and formally accept the date proposed or advise the employee of other action. TERMINATION PURPOSE To outline the provisions relating to a staff members involuntary termination of services POLICY I. The services of an employee may be terminated for any reason where issue of compliance is concerned and mutuality of interest has ceased to exist. II The services of any employee may be terminated without giving notice , by paying the salary of the notice period , if any as specified in the appointment letter

RESIGNATION / TERMINATION POLICY NO : W/HR 0024-05 SUBJECT : RESIGNATION / TERMINATION EFFECTIVE : 1st April2005

III All the decisions of termination will be communicated to the employee concerned in writing IV In case of termination the employee may be given the option to resign at his own request V. The Salary for this purpose shall mean the mean basic salary VI Any issues / actions/ relating to and of the employee , indicative of loss of confidence, misrepresentation of facts , false claims, wrong information , gross insubordination, moral turpitude, wrong information , severe misconduct, financial irregularity, severe performance issue , criminal offence against him will attract Termination from the Services forthwith. VII. There has to be sufficient documentary proof relating to aforesaid reason/s on the basis of which Termination Letter will be issued by the HR . ABANDONMENT OF EMPLOYMENT PURPOSE To outline the provisions which will be implemented as a result of a staff members abandonment of employment

RESIGNATION / TERMINATION

POLICY NO : W/HR 0024-05 SUBJECT : RESIGNATION / TERMINATION EFFECTIVE : 1st April2005

POLICY 1 Where employee has been absent from duty without permission authority for a Period of eight consecutive days or more , he will be deemed to have abandoned employment , and will cease to be an employee at that time The respective department head must notify HR Deptt. as soon as possible after becoming aware of an employee being absent from work without having first notified the immediate superior HR will endeavor to locate the employee in order to provide an opportunity to show case why employment should not be terminated

If contact can not be made within a period of three working days , or if the employee does not respond within three working days of a written or telephone request , Human Resource will terminate that individuals employment

Any appeal against an order of abandonment of employment will be heard and disposed off by the Directors .

RESIGNATION / TERMINATION

POLICY NO : W/HR 0025-05 SUBJECT : DISCIPLINE & DISCIPLINARY ACTION EFFECTIVE : 1st April2005 It is the responsibility of each deptt. Head /Branch head to maintain highest standard of working discipline in the workplace.. Matters of discipline , integrity , neglect of duty ,insubordination ,working in a manner detrimental to the business interest of the company , absenteeism etc. shall be treated as major misconduct. Depending on the gravity and nature of misconduct the following procedure will be adopted by the HR Deptt. in ascending order. ACTION Verbal Warning /Counseling METHOD Section Head / HR is to narrate the drawback/mistake /lapse/weakness very clearly to the employee; giving him a time period to improve and provide feedback to the employee on completion of period Warning Letter If the employee does not improve after verbal warning /caution then a mild warning letter should be issued to him referring to the counseling session Show Case Depending on the nature and gravity of the misconduct this Notice/Explanation maybe issued by HR giving 48 hours to respond in writing call Charge Sheet A detailed letter with narration of specifics , reply to be submitted within 24 hours to be issued in presence of 2 employees of the branch if refused to be sent by the registered post on the same day at local & permanent address. Charge Sheet cum In gross misconduct needing the employee to be away from Suspension the work immediately. order/Cum Enquiry Notice

WRL

DISCIPLINE & DISCIPLINARY ACTION

POLICY NO : W/HR 0026-05 SUBJECT : EXIT POLICY EFFECTIVE : 1st April2005

1 N T R O D U C T I O N Human Resource is the most important resource in an organisation as this is the only Resource which is capable of utilising other resources. When an employee joins an organisation a kind of give and take relationship is established between the employee and the organisation. When this important relationship comes to an end for whatever reasons it is essential to ascertain the reasons behind it. These reasons are ascertained by way of Exit Interview .In the process the organisation comes across some hidden aspects of the organisation which should be addressed for establishing a better employee employer relationship. Exit Interview is a very effective HR tool to elicit reasons for employee turnover and to understand the prevailing organisational climate so as to take corrective action if required. It often throws up some very sensitive and vital information about the organisation which normally an employee would not share in the course of his association with the organisation. It opens windows to the hidden causes of employee turnover. A study has to be made of the reasons to make employees stay in the organisation 2. O B J E C T I V E S To obtain reasons of Employee Turnover . To obtain a feedback about the prevailing organisational climate, policies e t c. To obtain information about the level of remuneration and status offered outside. To obtain feedback about the existing interpersonal relationship in the organisation.

EXIT POLICY

POLICY NO : W/HR 0026-05S SUBJECT : EXIT POLICY EFFECTIVE : 1st April2005

3. SCOPE

OF A P P L I C A T I O N

This practice shall be applicable to outgoing employees at all levels

4. METHOD

OF

IMPLEMENTAT I O N

The outgoing employee shall be interviewed by the Head H R before three four days of his release from the organisation with the help of structured questionnaire ( Annexure I ). Employees going from Branch Offices / Plants will be couriered this questionnaire and they are supposed to fill it up and send it back to the Corporate HR Deptt. before they leave the organization . This is essential requirement for issuing the relieving letter to the Employee. The data coming out of the Exit Interview will be analysed by the H R at regular intervals to identify the patterns. A summary of the analysis will be presented before the management and an appropriate action plan shall be drawn to further improve the organisational climate and minimise the employee turnover.

EXIT POLICY

EMPLOYEE

EXIT INTERVIEW

FO RM

I. P E R S O N A L Name :

DETAILS D. O. J Joining Desig Exp. at Western Date of Relieving: : : : :

Present Designation : Total Years of Exp : Date of Resignation :

Nature

of

Job : Technical / Commercial/ Marketing / HR / Administrative/Service

II

How did you get the job in our Organisation a. By applying in response to our advertisement in the Newspaper

b. Through Placement Agencies e. Through Reference.

EXIT POLICY

EMPLOYEE

EXIT INTERVIEW

FO RM

III. Did it

Whether the Job offered to you was exciting , challenging or enjoyable. add any value to you. IV. Was the location comfortable.Was the working atmosphere enjoyable.Were you respected as an individual. V. VII VIII IX. X. Whether you experienced growth in terms of level and responsibility. Whether you had opportunity to discuss your problems / grievances with any member of the H R Whether the Organisation provided you with sufficient learning opportunities to grow as a Professional Whether your Boss offered blossom. you freedom facilitating your creativity to

Mention two major drawbacks of this organisation according to you. 1__________________________________ 2 ._________________________________.

XI.

Mention two major strengths of the organisation according to you. 1________________________________ 2. _______________________________

XII. XIII.

Would you like to rejoin our organisation in future . Why / Why not. Why did you leave our Organisation . Please tick three most important reasons. 1. 2. For higher position For better emoluments

EXIT POLICY

EMPLOYEE
3. 4.

EXIT INTERVIEW

FO RM

For higher education. Change in nature of job.

5. Dissatisfaction due to a. Boss b. Peers c. Sub- ordinates d. Policies e. Organisational Politics. f. Inadequate Medical Facilities g. Stagnation h. Frequent / sudden transfer i. Inadequate Loan facilities. Please give details of your new Job. 1. Name of the Organisation Position Gross Salary p.m. : ______________________________ : ______________________________ : ______________________________

Finally, please suggest two corrective steps which you consider most effective to improve the organisation as a whole. 1. _________________________________ 2. _________________________________ Signature of the Candidate : Dt. Signature of HR Head Dt.

EXIT POLICY

POLICY NO : W/HR 0027-05 SUBJECT : FULL & FINAL SETTLEMENT EFFECTIVE : 1st April2005

PURPOSE : To settle the dues of the separating employees amicably on time with due adherence to the procedure POLICY 1. The Full & Final Settlement of an employee will be made only after recovering the Companys property and dues. 2. In case there is neither dues nor any recovery of companys s property , final settlement will be done within 20 days from the date of relieving and within 24 hours from the date of Termination . 3. The HR deptt. will prepare the Full and Final Settlement in duplicate .One copy will be given to the resigned employee and the other copy will go to his personal file 4. Payment will be made from Head Office and only by A/C Payee Cheque and not by Cash. 5. In case , the employee is not available to collect his Full & Final Settlement , the Cheque may be sent to his permanent address by the courier /registered A/D with a copy in the records or handed over to the person authorized by him to collect on his behalf in writing . 6. Any Payments to the leaving employee will be stopped once he submits the resignations. His all payments will be settled along with the full and final settlement . 7. The basic pay of the employee will be considered for the purpose calculating the notice pay from either side.

FULL & FINAL SETTLEMENT

POLICY NO : W/HR 0028-05 SUBJECT : RETIREMENT POLICY EFFECTIVE : 1st April2005

PURPOSE
To enable employee to plan his resources before the retirement date

POLICY
The age of retirement in the company will be 58 years The age of employee would be considered the same as evidenced by the relevant document produced at the time of joining In special cases employee may be invited to work beyond 58 years , based on his fulfilling the basic criteria

RETIREMENT POLICY